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January 15, 2015

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Anti-graft campaign eyes state-owned firms

CHINESE anti-graft authorities will inspect all major state-owned enterprises this year, as the country widens its campaign against corruption.

Teams will be sent to all SOEs under the control of the central government, said a communique issued at the conclusion of the fifth plenary session of the Party’s Central Commission for Discipline Inspection.

Inspectors will also step up supervision of other SOEs, the document said.

Though it did not name specific firms, the term usually refers to the 153 state-owned companies supervised by the State-Owned Assets Supervision and Administration Commission, and banks and other financial institutions supervised by State Council commissions.

Inspections of ministries, provincial governments, large SOEs and public institutions began in 2013.

Six SOEs under the care of the central government have been inspected and in the latest round eight more were scrutinized.

Internal inspections have led to several inquires into SOE executives, including Ren Yong, assistant general manager of Dongfeng Motor Corp, and China Southern Airlines’ Vice General Manager Chen Gang and its operations director Tian Xiaodong.

The discipline commission will also establish new offices in eight central government departments and the CPC Central Committee, the communique said.

It currently has offices in 52 of the more than 140 central Party and government departments. In December, it established seven offices in central government departments, the CPC Central Committee, the top legislature and national political advisory body.

Meanwhile, Party discipline inspectors were yesterday told to improve cooperation with foreign law enforcement agencies in the hunt for fugitives and asset recovery.

Corrupt officials must be brought to justice in China, the communique said.

Disciplinary organs should improve coordination and cooperation with those countries and regions known to be harboring the most-wanted fugitives. They must work hard to implement the Beijing Declaration on Fighting Corruption adopted at the APEC meeting in November and prevent corrupt officials from heading overseas, it said.

Under the Beijing Declaration, APEC members seek to eliminate corruption through extradition and judicial procedure. China is embroiled in an anti-corruption campaign that requires considerable international cooperation in apprehending suspects, notably the recently concluded Fox Hunt 2014, an intense six-month campaign to repatriate fugitives.

Chinese police filed applications in more than 90 countries and regions, and 680 fugitives were returned to China to face justice.

China’s anti-graft campaign last year saw a number of high-profile cases that shocked the country, including that of Zhou Yongkang — a former member of the Standing Committee of the Political Bureau of the Party’s Central Committee — and Xu Caihou, a former vice chairman of the Central Military Commission.

According to the discipline commission, cases involving 68 high-level officials are under investigation or have been closed.

A total of 71,748 officials were punished in 2014 for violations of the eight-point anti-graft rules.

The commission opened a new section on its website in December — anti-corruption, fugitive repatriation and asset recovery (www.ccdi.gov.cn/special/ztzz) — to help people pass on intelligence.


 

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